Thank you for this synopsis. I just started learning about this industry in the last couple of weeks. This, by far, has been the clearest explanation of the various aspects of oil and gas investing.
Fascinating. My parents invested in some Kentucky oil wells back in the day, and the kids are getting payments up to today. However I am sure they didn't know the tax bit. :( I think I will look further into this sector - and I would definitely be getting some help before I invest. Maybe from you. :) Oh and I have a new goal - to be an accredited investor.
What stocks or index fund can we buy to invest in "oil drilling" and/ or energy to be able to use these tax breaks? And how do we as average middle class income earners can invest in this oil wells if we do not qualify as an "accredited investor?"
It’s nearly impossible to invest directly In a partnership as a non Accredited investor. Typically a producer will have an opening for no more than (30) investors who are nit accredited
Would you be able to clarify - if someone has a NY LLC already operates- if they start a Wyoming holding company - would they only be taxed according to Wyoming tax law ?
Karlton, I heard using an irrevocable trust for investing in a working interest of Oil/Gas/Minerals is not recommended. I do have such a trust in which I will gift a large sum of crypto. I am assuming the trust will have a big tax bill and I want to offset those those taxes with a Direct Participation Program with a working interest. Is this possible?
Been knowing, but don’t know if it frees to securities or is there another way at an affordable level and then a higher level? Speak the gospel to me Karl 🙌🏼
With working interest, the royalty (after 15% deduction) the amount you get is consider active income. which would make my income tax look worse. what do people do that situation? S corp in self employment? Pleas give me some ideas to think about? Thanks.
Hi Karlton! I took your Tax-Free Wealth Challenge recently and loved all of the new things I was able to learn. I was contemplating between doing the Inner Circle, in comparison to hiring one of the Tax Professionals on your team. I already had a briefing with a Tax Professional with UncleKam and was hoping I may be able to speak with someone to see which route to go from here. Thank you so much in advance and I truly appreciate all of your material!
Karlton, I’m thinking about withdrawing funds out of my 401k, which would be taxable. And invest that into O&G working interest. 401k funds are considered ordinary income. Would this investment be able to deduct some, if not most, of those 401k funds? Do you think this strategy would work? Thank you.
Karlton,I have been watching your videos for a while,very informative.i would like to know what woul you do if you won one of hgtv's dream homes would you take the house in lieu of the cash lump sum
⚜️I'm in Texas..for 5 1/2 years now. This is a real thing! I did sales in this business- to investors..for a while when I 1st got here from CA. A lot of peoples' houses are sitting on oil & they have Oil Rights & receive payment every month! My ex works for an oil company. Many guys in this part of Texas work in the oil business here in the Permian Basin & they make amazing income! Long hours but everyone's well over 100k. No degree... just hard work, long hours... & the industry doesn't stop, doesn't close for the weekend, it's moving every single day, 24-7! If you can invest it can be a great investment just be careful! Great video!🎉
Everything you said is very true. I also work in the Permian. Everyone’s houses sit on oil but you can’t get the mineral rights to them. So you would have to go to landman school and learn that whole crap shoot of mineral rights buying and selling. Don’t have to I suppose if you’re a gamblin man but would be highly advised so you don’t loose your butt
Invested in a new oil rig that is about to start drilling. My CPA says we can't do any tax write-off cause it's an investment gamble. Nothing she says makes sense when this is telling me otherwise. Is there an IRS document that I can show her to prove otherwise?
if the investment doesn't provide return.... you lose $$$. much more than the tax deduction... FUndamentally, a lot of what this guy says is "use LOSS to offset income" ... You do the math, paying tax in full on all investments that generated profits is BETTER off than "generating losses" to offset the taxable income...
